If workers actively demand pay increases when the price level is rising and are willing to accept pay cuts when the price level is falling then the short-run aggregate supply curve would be horizontal?

If workers demand pay increases during rising price levels but accept pay cuts when prices fall, it suggests a strong sensitivity to changes in real wages rather than nominal wages. This behavior implies that firms can adjust their output without changing prices in the short run, leading to a horizontal short-run aggregate supply curve. In this scenario, the economy can respond to demand changes without facing upward pressure on prices, as workers' wage expectations are flexible. Thus, the short-run aggregate supply curve would be more elastic, resembling a horizontal line.